Thursday, March 7, 2013
Howard Marks' Presentation on Investing in Uncertain Times
Howard Marks, of Oaktree game, gave a presentation at the University of Oxford's Private Equity Forum earlier this week. He mentions how he fears the "unsound practices" from before the financial crisis (aka the 2007 era buyout boom) are creeping back into credit markets, with private equity firms bidding increasingly high prices for companies. He then went on to point out the ease with which lowly rated companies were issuing debt this year, how companies were paying out record dividends to their shareholders and the increasingly high debt-to-equity multiples private equity firms were paying for companies amid a resurgence in deals. He emboldened his call to proceed with caution.